Asos faces threat of brand supplier exit

Absrtact: ASOS The situation is grim, according to the Sunday Daily Telegraph said that many British apparel retailers complained that the products on the ASOS website seriously discounted, especially last Christmas season, this undoubtedly affect the brand image, so these retailers threatened ASOS will exit, no longer supply ASOS website

ASOS The situation is grim, according to the Sunday Daily Telegraph, a number of British apparel retailers complained that the products on the ASOS site, especially the last Christmas season, this will undoubtedly affect the brand image, so these retailers threaten ASOS exit, no longer supply ASOS website products.

But the retailer's threat may not be working, ASOS released its four quarterly earnings report last week and released a profit warning for the fiscal year, while ASOS announced that it would take a price cut in international markets to reverse its quarterly weakness in international market sales.

At present, although no retailer has actually withdrawn from Asos, these fashion retailers only allow Asos to sell their products in the UK market, rather than allowing Asos to be sold on the international market.

A retailer executive, who declined to be named, accepted Telegraph, and if Asos continued discounting, Next's web site and directory mail-order service would be "another option for disappointed retailers".

As for suppliers ' complaints, Asos responded that Asos would not comment on brands and customers, nor comment on Asos's relationship with them.

Asos has been alerted by some analysts because of its reliance on selling other retailers ' brands. Some analysts believe that the online retail market has undergone a fundamental change in the pattern, more and more brands start their own e-commerce, so that Asos such multi-brand third-party distributors will bear increasing operating and profitability pressure, the prospects are weak, and its competitors N Brown and Boohoo. COM is owned by its own brand.

Asos's share price has fallen by nearly 68% so far this year, and 2014 is a year of Asos Bubbles, and Asos's own strategy, warehouse fire, founder divorce and other "natural and man-made disasters" have also accelerated the pace of Asos sliding into the abyss.

In Monday, ASOS's shares plunged 4%, to a minimum of 1954 pence, below the 2000-penny Mark to a 2-year low, to the time of the no-fashion Chinese network, which narrowed to about 1.6% for 2001 pence.